It can be a very daunting prospect to consider how to set up your will or living trust. There are many options, and choosing the right one for you will depend on your circumstances. However, a revocable living trust remains to be a viable and flexible option for many people.
This blog will provide a brief overview into what revocable living trusts are, and what the benefits can be for those who set one up.
What is a revocable living trust?
A revocable living trust is a fund that is set up and can begin working within your lifetime. It is a common estate planning tool that can partially replace a will by transferring your assets to designated people gradually over time. A trustee, usually a close friend who you can depend on, can help you to manage the trust, and property associated with it, on behalf of your family.
What are the benefits of a living trust?
There are many benefits of a living trust, and they are mostly chosen because of their flexibility. The most common reasons why people choose a revocable living trust over other options are:
- A living trust can help you financially if you become ill or incapacitated
- It helps family members to avoid standard probation processes after your death
- Unlike a will, a living trust is not public information, therefore you are entitled to privacy
- You can easily modify the trust at any point in your lifetime
- You have greater control over the terms of your assets
As you can see, living trusts offer a great alternative to wills, giving the grantor many ways to distribute his or her wealth during his or her lifetime.
Source: Findlaw, “Revocable trust,” accessed Sep. 08, 2017